Avesoro Resources Inc. Q3 2018 PRODUCTION UPDATE (3506D)

TIDMASO

RNS Number : 3506D

Avesoro Resources Inc.

09 October 2018

9 October 2018

Avesoro Resources Inc.

TSX: ASO

AIM: ASO

Q3 2018 PRODUCTION UPDATE

RESULTS IN LINE WITH FULL YEAR GUIDANCE

Avesoro Resources Inc., ("Avesoro" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to announce its preliminary production results for the quarter ended September 30, 2018 ("Q3" or the "Quarter") from its New Liberty Gold Mine ("New Liberty") in Liberia, and Youga Gold Mine, ("Youga") in Burkina Faso.

Highlights:

-- Total gold production of 47,177 ounces in the Quarter, bringing year to date gold production to 175,496 ounces;

   --      The Company maintains full year 2018 production guidance of 220,000 -240,000 ounces; 

-- Ore mining rates have increased at both New Liberty and Youga compared with the previous quarter;

-- Total material moved consistent with the previous quarter notwithstanding Q3 being the peak of the wet season in both Burkina Faso and Liberia;

   --      New Liberty gold production of 27,456 ounces in the Quarter; and 
   --      Youga gold production of 19,721 ounces in the Quarter. 

Serhan Umurhan, Chief Executive Officer of Avesoro, commented: "I am pleased that the Company has been able to maintain total material movement throughout the peak of the wet seasons in both Liberia and Burkina Faso, with Youga, in particular, experiencing three times more rain this year than during the same period in 2017. Moving into the fourth quarter of the year we expect total material movement to increase and we maintain our full year production guidance of 220,000 to 240,000 ounces of gold."

Table 1: Preliminary Group Production Results

 
 Parameter          Unit      Q3-2018   Q2-2018   Variance   Year To 
                                                                Date 
 Ore Mined          kt            629       596         6%     1,817 
                   --------  --------  --------  ---------  -------- 
 Waste Mined        kt          9,146     9,242        -1%    25,700 
                   --------  --------  --------  ---------  -------- 
 Total Material 
  Movement          kt          9,775     9,838        -1%    27,517 
                   --------  --------  --------  ---------  -------- 
 Ore Processed      kt            633       659        -4%     1,942 
                   --------  --------  --------  ---------  -------- 
 Gold Production    Ounces     47,177    60,231       -22%   175,496 
                   --------  --------  --------  ---------  -------- 
 

New Liberty

Mining operations performed consistently during the Quarter compared with the previous quarter resulting in total material movement of 5,634Kt. Process plant throughput for the Quarter increased by 1% to 354kt, as a result of further incremental improvements to the process plant flowsheet, resulting in gold recovery of 90%, an increase of 3% on the previous quarter and gold production of 27,456 ounces. However, reported gold production in the Quarter is 8% less than in Q2 2018 due to a change in the gold in circuit inventory.

Table 2: New Liberty Performance Metrics

 
 Parameter          Unit      Q3-2018   Q2-2018   Variance   Q3-2017   Variance 
                   --------            -------- 
 Ore Mined          kt            396       375         6%       247        60% 
                   --------  --------  --------  ---------  --------  --------- 
 Mined Grade        g/t          2.86      2.70         6%      2.75         4% 
                   --------  --------  --------  ---------  --------  --------- 
 Waste Mined        kt          5,237     5,312        -1%     2,980        76% 
                   --------  --------  --------  ---------  --------  --------- 
                    Waste: 
 Strip Ratio         Ore         13.2      14.2        -7%      12.1        10% 
                   --------  --------  --------  ---------  --------  --------- 
 Total Material 
  Movement          kt          5,634     5,688        -1%     3,227        75% 
                   --------  --------  --------  ---------  --------  --------- 
 Ore Processed      kt            354       352         1%       254        39% 
                   --------  --------  --------  ---------  --------  --------- 
 Feed Grade         g/t          2.82      2.81         0%      2.59         9% 
                   --------  --------  --------  ---------  --------  --------- 
 Recovery           %              90        87         3%        91        -1% 
                   --------  --------  --------  ---------  --------  --------- 
 Gold Production    Ounces     27,456    29,808        -8%    19,885        38% 
                   --------  --------  --------  ---------  --------  --------- 
 

Youga

Total material movement for the Quarter was 4,142kt, in line with the previous quarter despite the heavy rains experienced during the Quarter. Gold production in the Quarter was 19,721 ounces, a reduction of 35% on Q2 2018, primarily due to a 23% lower mined grade due to a focus on the lower grade oxide ore zone at the Gassore East pit and a reduction in ore tonnes mined from Balogo which resulted in the plant feed grade being 29% lower than the previous quarter. Process plant throughput also reduced by 9% during the Quarter to 279kt due to the impact of the heavy rains experienced at Youga. Management expect that both plant feed grade and ore throughput will increase throughout Q4 2018.

Table 3: Youga Performance Metrics

 
 Parameter          Unit      Q3-2018   Q2-2018   Variance   Q3-2017   Variance 
 Ore Mined(1)       kt            233       221         5%       159        47% 
                   --------  --------  --------  ---------  --------  --------- 
 Mined Grade(1)     g/t          2.76      3.59       -23%      5.89       -53% 
                   --------  --------  --------  ---------  --------  --------- 
 Waste Mined        kt          3,909     3,930        -1%     2,283        71% 
                   --------  --------  --------  ---------  --------  --------- 
                    Waste: 
 Strip Ratio         Ore         16.8      17.8        -6%      14.3        17% 
                   --------  --------  --------  ---------  --------  --------- 
 Total Material 
  Movement          kt          4,142     4,150         0%     2,442        70% 
                   --------  --------  --------  ---------  --------  --------- 
 Ore Processed      kt            279       307        -9%       277         1% 
                   --------  --------  --------  ---------  --------  --------- 
 Feed Grade         g/t          2.44      3.44       -29%      4.79       -49% 
                   --------  --------  --------  ---------  --------  --------- 
 Recovery           %              90        90         0%        89         1% 
                   --------  --------  --------  ---------  --------  --------- 
 Gold Production    Ounces     19,721    30,423       -35%    38,126       -48% 
                   --------  --------  --------  ---------  --------  --------- 
 

(1) Including 44 kt of ore at 4.53 g/t from the Balogo satellite deposit in Q3 2018 (Q2 2018: 76kt at 4.78/t; Q3 2017: 55 kt at 12.82 g/t).

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Contact Information

 
   Avesoro Resources Inc. 
    Geoff Eyre / Nick Smith 
    Tel: [phone] 
   Camarco                           finnCap 
    (IR / Financial PR)               (Nominated Adviser and Joint Broker) 
    Gordon Poole / Nick Hennis /      Christopher Raggett / Scott Mathieson 
    Monique Perks                     / Camille Gochez 
                                      Tel: [phone] 
    Tel: [phone] 
   Berenberg                         Hannam & Partners (Advisory) LLP 
    (Joint Broker)                    (Joint Broker) 
    Matthew Armitt / Sara MacGrath    Rupert Fane / Ingo Hofmaier / Ernest 
    / James Brooks                    Bell 
    Tel: [phone] 
                                      Tel: [phone] 
 

About Avesoro Resources Inc.

Avesoro Resources is a West Africa focused gold producer and development company that operates two gold mines across West Africa and is listed on the Toronto Stock Exchange ("TSX") and the AIM market operated by the London Stock Exchange ("AIM"). The Company's assets include the New Liberty Gold Mine in Liberia ("New Liberty") and the Youga Gold Mine in Burkina Faso ("Youga").

New Liberty has an estimated Proven and Probable Mineral Reserve of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an estimated Measured and Indicated Mineral Resource of 11.5Mt with 1,105,000 ounces of gold grading 3.0g/t and an estimated Inferred Mineral Resource of 3.7Mt with 424,000 ounces of gold grading 3.6g/t. The Company has prepared an NI 43-101 compliant Technical Report dated November 1, 2017 and entitled "New Liberty Gold Mine, Bea Mountain Mining Licence Southern Block, Liberia, West Africa" and is available on SEDAR at www.sedar.com.

Youga has an estimated Proven and Probable Mineral Reserve of 11.2Mt with 660,100 ounces of gold grading 1.84g/t and a combined estimated Measured and Indicated Mineral Resource of 16.64Mt with 924,200 ounces of gold grading 1.73g/t and an Inferred Mineral Resource of 13Mt with 685,000 ounces of gold grading 1.70g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith, prepared in accordance with CIM guidelines, is set out in an NI 43-101 compliant Technical Report dated July 31, 2018 and entitled "Mineral Resource and Mineral Reserve Update for the Youga Gold Mine, Burkina Faso" and is available on SEDAR at www.sedar.com.

For more information, please visit www.avesoro.com

Qualified Persons

The Company's Qualified Person is Mark J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy from Aberdeen University, United Kingdom and is a Fellow of the Geological Society of London, a Fellow of the Society of Economic Geologists and a registered Professional Natural Scientist (Pr. Sci.Nat) of the South African Council for Natural Scientific Professions. Mark Pryor is an independent technical consultant with over 25 years of global experience in exploration, mining and mine development and is a "Qualified Person" as defined in National Instrument 43 -101 "Standards of Disclosure for Mineral Projects" of the Canadian Securities Administrators and has reviewed and approved this press release. Mr. Pryor has verified the underlying technical data disclosed in this press release.

Forward Looking Statements

Certain information contained in this press release constitutes forward looking information or forward-looking statements within the meaning of applicable securities laws. This information or statements may relate to future events, facts, or circumstances or the Company's future financial or operating performance or other future events or circumstances. All information other than historical fact is forward looking information and involves known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results, performance, events or circumstances expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe", "target", "predict" and "potential". No assurance can be given that this information will prove to be correct and such forward looking information included in this press release should not be unduly relied upon. Forward looking information and statements speak only as of the date of this press release.

Forward looking statements or information in this press release include, among other things, statements regarding full year 2018 production guidance of 220,000 to 240,000 ounces of gold.

In making the forward looking information or statements contained in this press release, assumptions have been made regarding, among other things: general business, economic and mining industry conditions; interest rates and foreign exchange rates; the continuing accuracy of Mineral Resource and Reserve estimates; geological and metallurgical conditions (including with respect to the size, grade and recoverability of Mineral Resources and Reserves) and cost estimates on which the Mineral Resource and Reserve estimates are based; the supply and demand for commodities and precious and base metals and the level and volatility of the prices of gold; market competition; the ability of the Company to raise sufficient funds from capital markets and/or debt to meet its future obligations and planned activities and that unforeseen events do not impact the ability of the Company to use existing funds to fund future plans and projects as currently contemplated; the stability and predictability of the political environments and legal and regulatory frameworks including with respect to, among other things, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities; that contractual counterparties perform as agreed; and the ability of the Company to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet its demand.

Actual results could differ materially from those anticipated in the forward-looking information or statements contained in this press release as a result of risks and uncertainties (both foreseen and unforeseen) and should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. These risks and uncertainties include the risks normally incidental to exploration and development of mineral projects and the conduct of mining operations (including exploration failure, cost overruns or increases, and operational difficulties resulting from plant or equipment failure, among others); the inability of the Company to obtain required financing when needed and/or on acceptable terms or at all; risks related to operating in West Africa, including potentially more limited infrastructure and/or less developed legal and regulatory regimes; health risks associated with the mining workforce in West Africa; risks related to the Company's title to its mineral properties; the risk of adverse changes in commodity prices; the risk that the Company's exploration for and development of mineral deposits may not be successful; the inability of the Company to obtain, maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and other risks relating to the legal and regulatory frameworks in jurisdictions where the Company operates, including adverse or arbitrary changes in applicable laws or regulations or in their enforcement; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company's operations; that Mineral Resource and Reserve estimates are only estimates and actual metal produced may be less than estimated in a Mineral Resource or Reserve estimate; the risk that the Company will be unable to delineate additional Mineral Resources; risks related to environmental regulations and cost of compliance, as well as costs associated with possible breaches of such regulations; uncertainties in the interpretation of results from drilling; risks related to the tax residency of the Company; the possibility that future exploration, development or mining results will not be consistent with expectations; the risk of delays in construction resulting from, among others, the failure to obtain materials in a timely manner or on a delayed schedule; inflation pressures which may increase the cost of production or of consumables beyond what is estimated in studies and forecasts; changes in exchange and interest rates; risks related to the activities of artisanal miners, whose activities could delay or hinder exploration or mining operations; the risk that third parties to contracts may not perform as contracted or may breach their agreements; the risk that plant, equipment or labour may not be available at a reasonable cost or at all, or cease to be available, or in the case of labour, may undertake strike or other labour actions; the inability to attract and retain key management and personnel; and the risk of political uncertainty, terrorism, civil strife, or war in the jurisdictions in which the Company operates, or in neighbouring jurisdictions which could impact on the Company's exploration, development and operating activities.

Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, the Company cannot provide assurance that actual results or performance will be consistent with these forward-looking statements. The forward looking information and statements included in this press release are expressly qualified by this cautionary statement and are made only as of the date of this press release. The Company does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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October 09, 2018 02:00 ET (06:00 GMT)